The U.S. Navy has awarded BAE Systems a $175 million contract for more than 7,000 Advanced Precision Kill Weapon System (APKWS®) Laser-Guided Rockets.

This latest award was made under the Navy’s 2016 $600 million indefinite delivery/indefinite quantity contract, which is the contracting vehicle to supply APKWS rockets to the U.S. Navy, U.S. Marine Corps, U.S. Army and U.S. Air Force, as well as an increasing number of allied nations. This award extends that contract’s initial unit production cap and total value to meet the growing demand. The company expects additional orders to bring the total number of units for this production lot to 17,500.

“Global demand for our precision strike capabilities is being driven by a need for munitions that can strike soft targets with accuracy surrounded by friendly forces, civilians, and valuable assets,” said Marc Casseres, Director of Precision Guidance and Sensing Solutions at BAE Systems. “With APKWS, our customers get a high-quality, reliable, easy-to-use product that is designed to hit intended targets with extreme accuracy.”

BAE Systems continues to ramp up production capacity as it builds toward an annual production level of more than 20,000 units. The company is delivering APKWS rockets to meet surging customer demand while maintaining an unwavering commitment to quality. Its state-of-the-art precision guidance manufacturing facilities in New Hampshire and Texas and its strong supplier network have enabled it to accelerate full-rate production, exceed manufacturing expectations, and deliver units to the Navy ahead of schedule.

The innovative APKWS technology transforms standard 2.75-inch (70-millemeter) rockets into precision munitions by simply installing the guidance kit between the warhead and engine of an unguided rocket. The APKWS rocket’s extreme accuracy is ideal for minimizing collateral damage to assets in close proximity to targets, thereby reducing risk for troops in the field while providing close air support.

APKWS rockets are the only guided 2.75-inch rockets qualified both by the U.S. Department of Defense, and for use on multiple military rotary- and fixed-wing aircraft. APKWS rockets are used by the U.S. Navy, U.S. Marine Corps, U.S. Army, and U.S. Air Force and are available to international customers via the U.S. Foreign Military Sales process.